acc_250_week_2_checkpoint_bellweth...

Exercise 1-6A. The conceptual differences:Measurements focus what items are being reported in the financial statement. An economic resource measurements focus measure both current and long-term assets and liabilities and is the measurement focus used by commercial businesses. Basis of accounting determines when transaction and events are recognized in the accounting records. (Textbook, page 12) B. Differences in revenue recognition:(On page 12) the accrual basis of accounting recognizes revenues when they are earned (and are expected to be realized). Modifi